Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Comfi Airways, Inc., a small two-plane passenger airline, has asked for your assis- tance in some basic analysis of its operations. Both planes seat 10 passengers each, and they fly commuters from Comfi's base airport to the major city in the state, Metropolis. Each month, 40 round-trip flights are made. Shown below is a recent month's activity in the form of a cost-volume-profit income statement.
Fare revenues (400 fares) Variable costs Fuel
$14,000
$48,000
Snacks and drinks
800
Landing fees
2,000
Supplies and forms
1,200
18,000
Contribution margin Fixed costs
30,000
Depreciation
3,000
Salaries
15,000
Advertising
500
Airport hangar fees
1,750
20,250
Net income
$9,750
Instructions
(a) Calculate the break-even point in (1) dollars and (2) number of fares.
(b) Without calculations, determine the contribution margin at the break-even point.
(c) If fares were decreased by 10%, an additional 100 fares could be generated. However, total variable costs would increase by 20%. Should the fare decrease be adopted?
What is P&G's accounting policy related to advertising? What accounting principle does P&G follow regarding accounting for advertising? Where are advertising expenses reported in the financial statements?
Prepare a schedule showing a vertical analysis for 2009 and 2008 and Prepare horizontal analysis.
Various criteria will disqualify the deduction of a business or investment related expenditure. Which of the following criteria will not disqualify a business or investment expenditure?
Illustrate what are the consequences of not telling the president of our gross miscalculations, both ethical and non-ethical? Are there other ethical implications or issues that you and the president need to consider in this situation?
Prepare an analysis that shows whether or not the 20,000 units of Product A should be processed further and prepare an analysis to determine whether Varto should sell the products as is or rework them and then sell them
Why do most companies use normal or standard costing? After all, actual costing gives the actual cost, so the firm could just wait until it knows what the cost will be.
Deluxe Ezra Company purchases equipment on January 1, Year 1, at a cost of $469,000. The asset is expected to have a service life of 12 years and a salvage value of $40,000. Compute the amount of depreciation for each of Years 1 through 3 using the s..
Calculate the sales revenue level at which the business broke even in 2011 and calculate the sales revenue that would have been required to generate an operating profit of £240,000 in 2011.
target cost for the new price and change in operating income for the year.we-catch corporation manufactures fishing
Calculate the depreciation under the straight line method and calculate the depreciation under the double declining method.
Taylor Lewis Company has provided information on intangible assets as follows. A patent was purchased from Craig Company for $4,000,000 on June 1, 2015. Lewis estimated the remaining useful life of the patent to be eight years. The patent was carried..
Wetzels INC has 20,000 shares of cumulated preferred stock outstanding with annual dividends paid at a rate $2 per share. Wetzel INC also has 40,000 shares of common stock outstanding. Preferred dividends were passed in the prior year. If Wetzels INC..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd